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2015 (9) TMI 1040 - ITAT AHMEDABAD

2015 (9) TMI 1040 - ITAT AHMEDABAD - TMI - Employees' contribution to PF and ESI - failure to deposit before due date - applicability of section 43B read with section 2(24)(x) - Held that:- This issue is covered against the assessee by the decision in the case of CIT Vs. Gujarat State Road Transport Corporation, reported in (2014 (1) TMI 502 - GUJARAT HIGH COURT).

Disallowance of provision for Cess on royalty - as per assessee he has reversed the provision in the subsequent year and o .....

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other year is concerned. However, the assessee will be at liberty to put up the proper claim in the year in which the provision is reversed and the income is offered. With this remark, we sustain the addition - Decided against assessee.

Disallowance of credit for TDS - AO did not allow the credit of TDS on the ground that the tax has been deducted on the rent received by the assessee - Held that:- The identical issue is considered by the ITAT Mumbai Bench in the case of the assessee .....

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assessable - Decided in favour of assessee. - ITA No. 2382/Ahd/2011 - Dated:- 5-6-2015 - G D Agrawal, VP And Kul Bharat, JM,JJ. For the Appellant : Shri V R Choksi, AR For the Respondent : Shri Dinesh Singh, Sr DR ORDER Per: G D Agrawal: This is an appeal filed by the assessee and is directed against the order of the Ld. Commissioner of Income-tax(Appeals)-VI, Ahmedabad dated 26.07.2011, pertaining to Assessment Year 2008-09. 2. The first ground of the assessee's appeal reads as under:- 1. .....

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cision of Hon'ble Jurisdictional High Court in the case of CIT Vs. Gujarat State Road Transport Corporation, reported in (2014) 366 ITR 170 (Guj). Respectfully following the same, we reject Ground No.1 of the assessee's appeal. 4. Ground No.2 of the assessee's appeal reads as under:- 2. On the facts and in the circumstances of the case, the learned CIT(A) erred in confirming disallowance of ₹ 5,51,327/- made by the Assessing Officer by disallowing provision for Cess on royalty. .....

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e year under consideration; however, the same income cannot be taxed doubly because in the subsequent year the assessee has already reversed the provision and offered the income. He, therefore, submitted that if the addition is sustained in the year under consideration, then in the subsequent year in which the assessee has offered the income, no addition should be made. 6. The ld. Departmental Representative, on the other hand, relied upon the orders of the authorities below. 7. We have carefull .....

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The ld. Counsel for the assessee has submitted that the assessee has reversed the provision in the subsequent year and offered the same amount i.e. ₹ 5,51,327/-. Therefore, if the addition is sustained in this year, then suitable direction may be given in the other year wherein this provision is reversed. However, the ld. Counsel for the assessee has not filed any supporting document in support of his contention that the provision is reversed in the subsequent year and the income is offere .....

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ly, the Ground No.2 of the assessee's appeal is rejected. 8. Ground No.3 of the assessee's appeal reads as under:- 2. On the facts and in the circumstances of the case, the learned CIT(A) erred in confirming the finding of the Assessing Officer that the appellant firm is not entitled to get credit for TDS of ₹ 9,62,952/- 9. We have heard both the parties and perused the material placed before us. The Assessing Officer did not allow the credit of TDS on the ground that the tax has b .....

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s:- "15. Thus it emerges that the major function of section 199 is to allow credit for tax deducted at source to the payee. The modus operandi for the discharge of such function is in-built in the section itself. It is done by finding out the year in which the income on which tax was deducted, is assessable to tax. It is quite natural that the credit for tax deducted at source from the amount of income should be allowed simultaneous with the event of chargeability of such income to tax. So .....

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why it has been made clear that the credit should be allowed in the year in which the income on which such tax has been deducted, is assessable so as to make it explicitly clear that the assessee may not claim the credit for such tax deducted at source in an earlier or a later year. Once the question is decided that the income is chargeable in a particular year in the hands of the payee, then the scope of section extinguishes inasmuch as there remains no doubt in allowing credit for such tax to .....

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to the payee) if the question is determined that the amount received is not at all an income assessable to tax either in the year of receipt or in any earlier or later year. Such problem has arisen in the present case. It is noticed that the amount of rent has suffered deduction of tax at source at two stages but income is chargeable to tax only once and that too not in the hands of the assessee. The Revenue has received the tax due on such rent by way of deduction of tax at source made by M/s .....

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AO had held that the amount received by the assessee as chargeable to tax in a later or an earlier year, then of course, the assessee could not have validly claimed the credit for tax deducted at source against its income for the current year. As the amount on which tax was deducted at source is not at all chargeable to tax, then the command of section 199 will have to be harmoniously and pragmatically read as providing for allowing credit for the tax deducted at source in the year of the receip .....

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